State-run banks’ bad loans over Rs 6 lakh crore as on end-September

Gross NPAs of the PSBs have surged from 5.43 per cent of the total advances (Rs 2.67 lakh crore) in 2014-15, to 9.32 per cent (Rs 4.76 lakh crore) in 2015-16

NEW DELHI: Gross NPAs (Non-Performing Assets), or bad loans, of PSBs (Public Sector Banks) as on end-September arises to Rs 6,30,323 crore, as against Rs 5,50,346 crore at the end of the first quarter on June 30, Parliament House was informed on Tuesday.

This implies an increase of Rs 79,977 crore in bad loans in the second quarter over the first quarter, Minister of State for Finance Santosh Kumar Gangwar communicated to the Rajya Sabha in a written reply.

“The government has taken sector-specific measures (infrastructure, power, road textiles, steel etc.) where occurrence of NPA is high,” he stated, listing passing of legislations like the IBC (Insolvency and Bankruptcy Code), modification of the SARFAESI (Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act) and the RDDBFI (Recovery of Debt due to Banks and Financial Institutions) Act directed at improving resolution or recovery of bank loans.

“6 new Debt Recovery Tribunals have been launched for improving recovery,” he stated.

Moreover, the RBI has introduced a several relevant tools such as Corporate Debt Restructuring, formation of the Joint Lenders Forum, the Strategic Debt Restructuring scheme and Sustainable Structuring of Stressed Assets, he added.

In a separate reply, Santosh Kumar Gangwar stated that out of Rs 2.80 lakh crore loans to the iron and steel sector at end-June, Rs 1.24 lakh crore has gone bad loans, which works out to 44.54 per cent.

Gross NPAs of the PSBs have heaved from 5.43 per cent of the total advances (Rs 2.67 lakh crore) in 2014-15, to 9.32 per cent (Rs 4.76 lakh crore) in 2015-16